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Germany’s Creative Sector and its Impact on Employment Growth

A Theoretical and Empirical Approach to the Fuzzy Concept of Creativity: Richard Florida’s Arguments Reconsidered

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Jan Wedemeier

The creative sector is considered to impact on employment and creative sector’s employment growth. Using a fixed effects model with time-lags, evidence is found that the creative sector fosters the growth rate of employment in German regions. Large shares of creative professionals lead to an increase in employment, but also reduce the growth rate of the creative sector. However, the growth rates are unequally distributed between the regions. Initially large shares of creative professionals further push the regional concentration of those professions in highly agglomerated regions. Driving forces for the concentration are specific characteristics, i.e. knowledge spillovers and cultural amenities. Moreover, for the evolution of the creative sector current policy strategies for the promotion of creative cities are presented.

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Part I.Conceptual background and theory

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Part I. Conceptual background and theory 2. Review on creative cities and regions In order to facilitate a better understanding of the research questions and develop the hypotheses, this work begins with the literature review. Section 2.1 offers a review on the origin of research related to the creative sector. Section 2.2 shows the current state of research on the creative sector. It presents some methods in the economic literature, which have looked at the creative sector and economic as well as employment growth. This review focuses on economic research for Europe and, in particular, Germany. This shall help frame the empirical case of the employment and creative professionals’ growth in Germany presented in chapter 5. Besides focusing on the creative sector, the review at hand further show the link between the creative sector and diversity. Section 2.3 closes with a critique of methods and contents. Outlined in the last section of chapter 2, the critique is linked to a number of consequences relevant for the following chapters. 2.1. Talent, tolerance and technology: Stylised facts on creativity Florida (2002) argues that so-called creative professionals contribute to explaining eco- nomic transformation and growth. Florida’s hypothesis is that these professionals are marked by capabilities and skills which foster structural transformation towards a know- ledge-based and creative economy. Therefore, the creative professionals are supposed to be the main drivers of cities’ and regions’ knowledge-based economies. Florida’s (2002) basic argument is that the economic success and competitive advantage of cities and regions is...

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